Qantas shares surged almost 14% today after the airline forecast its best first half result since 2010 – an underlying profit before tax of $300m to $350m.
The shares have now doubled in value since mid-July, propelled by greater business efficiencies, a cap on capacity expansion and lower fuel prices.
CEO Alan Joyce said: “This demonstrates that the strategy we have outlined to transform our business is working.
“We are committed to completing the full $2 billion program to ensure a sustainable competitive position for the long-term.”
Meanwhile, The Australian reports that Qantas is no longer advertising with Fairfax Media, one of Australia’s most significant publishers.
The reason? It reckons Qantas is being treated harshly by Fairfax while major competitor Virgin is getting a rails run with non-critical coverage.
The Qantas Group, which also includes Jetstar, will also reportedly “pull (Fairfax Media’s) The Sydney Morning Herald and The Age from on board its aircraft and at the gate.”
The tipping point was apparently an article calling for Mr Joyce to resign after its August results announcement.